2026 SECU Annual Meeting: Sharing SECU Finnancial Information - Too Taxing? Part IV

   Or is it a bit too IRkSome?

One of the softball questions submitted for response at the Annual meeting is:

 ✔ "4. Why doesn't the Board publish our monthly financial statements online? Is there a problem?" [See Part II - link]. Which prompted a trollish response: "4) if you really need to see them monthly you can request them. (Members rarely do, by the way)"

Not certain why the SECU Board continues to adopt a disdainful attitude toward SECU members on such a non-controversial issue - especially when member access to financial information is mandated by North Carolina law? (Why not get modern - "Go Digital!") 

✅ Why play hardball with SECU members on such a simple issue? Well, what goes around, comes around! Here's another question which a member submitted for response at the Annual meeting this week:

✔ "Would you please explain the $26.5 million, non-recourse loan granted by the Board to CEO Leigh Brady, which was reported to the IRS.?" 

Say what? SECU is required to file an annual tax return (called a "990-T") with the IRS. Yes, that's right - even though SECU is tax-exempt. Key IRS goals are to track the scope of financial activity, major third party contracts, levels of executive compensation, and to monitor for potential conflicts of interests. [take a look at the full 2025 SECU 990-T here].

Here's what the member is questioning: 

"THE CREDIT UNION HAS A SERP PLAN FOR KEY EXECUTIVES. DURING FISCAL YEAR 2025, A N0N-RECOURSE LOAN WAS GRANTED TO LEIGH BRADY, PRESIDENT, IN THE AMOUNT OF $26,500,000 FOR THE PURCHASE OF SPLIT DOLLAR LIFE INSURANCE. 

 

😎 The SECU Board wasn't real forthcoming about its loan of $6.5 million to the former CEO (still owed as you can see) - which caused a firestorm of critique. Perhaps this year's response on the $26.5 million CEO loan will be clearer - and more convincing!

   Lets hope so... wonder if it's a "risk-based" loan? 

2026 SECU Annual Meeting: "What We Have Here Is Failure To Communicate"! Part III

    2026 SECU Annual Meeting

Got some push back from yesterday's post, claiming many of the questions were "too tactical"; and therefore, evidently beneath the dignity of our Board and CEO to answer - unworthy of response! 

Sure hope that's not true and that the CEO "Q&A" rises well above the sketchy blah-blah-blah of the anonymice.  BTW, the most frequently asked question seemed to be: "Why are we getting screwed with a 2% money market rate in a 4%+ t-bill world? "Too tactical"? Yes! Relevant? ... oh hell yes! Last time this lax-lag mistake happened $5 billion in member funds departed. 

✅ There were several questions concerning the communications process - or lack there of - with the membership. 

1. To whom are member questions submitted and how do members know all questions are answered?
2. Why am I limited to only one question in advance?
3. Why won't our CEO participate in live interviews with the press? Or hold public member forums? 
4. Why won't our CEO hold regional open dialogue sessions with members? Or may members attend advisory board meetings to ask questions?
5. Your requirement that questions be submitted with a name and address intimidates members, especially employees. Is this intentional?
6. How can a group of SECU members present a resolution to the Board of Directors for consideration and response? What is the best way for members to be heard on important issues?

That last one (#6) is the sine qua non of the refusal by the SECU Board to communicate with its member-owners. It's the infamous "Rule 6" adopted in 2023 by the Board: "Rule 6. No substantive motions shall be permitted from the floor other than those provided in the notice of the meeting."  

 

✔ That leadership hauteur was subsequently heightened by an internal "legal" opinion claiming SECU now requires a 300,000+ SECU member petition and a "Special Membership Meeting" to present a resolution to the SECU Board! Democracy in action at SECU?

 

😎 Over the last 5 years, SECU has often been "over-lawyered" and "under-led". It will be interesting to see if our new CEO will rise to the occasion... and "lead us up out of Egypt"?

 

 "Cool Hand Leigh"? [link]... let's hope so!